Essity’s new business areas of Health & Medical, Consumer Goods, Professional Hygiene officially replace its former business units; Essity reports Health & Medical net sales at SEK21.7M in 2021, Consumer Goods at SEK74M, Professional Hygiene at SEK26.1M

Sample article from our Tissue & Hygiene

STOCKHOLM , January 26, 2022 (press release) –

As of January 1, 2022, Essity’s business areas are Health & Medical, Consumer Goods and Professional Hygiene. These are aligned with the company’s customer and sales channels and will lead to an expansion of the offerings to new and adjacent categories as well as extended service content on the basis of customer and consumer needs. The new areas support the company’s new sales growth target through strategies for organic and acquisition-driven growth and aim to achieve higher growth and profit margins as well as less capital tied up. The business areas replace the former business areas Personal Care, Consumer Tissue and Professional Hygiene.

Business areas:

Health & Medical

Health & Medical encompasses the Incontinence Products Health Care and Medical Solutions categories. The offering includes incontinence products, wound care, compression therapy, orthopedics, skincare products and digital solutions with sensor technology under brands such as TENA, Leukoplast, Cutimed, JOBST, Actimove and Delta-Cast. Distribution channels for the products are pharmacies, medical devices stores, hospitals, distributors and care institutions as well as online.

Consumer Goods

Consumer Goods includes the categories of Incontinence Products Retail, Baby Care, Feminine Care and Consumer Tissue. The offering includes incontinence products, pads, diapers, wet wipes, skincare products, intimate soaps, washable absorbent underwear, menstrual cups, toilet paper, household towels, handkerchiefs, facial tissues and napkins. Products are sold under brands such as the globally leading TENA brand and other strong brands including Libero, Libresse, Nosotras, Saba, TOM Organic, Lotus, Regio, Tempo and Vinda. Distribution channels for the products are the retail trade and online.

Professional Hygiene

Professional Hygiene comprises complete hygiene solutions, including toilet paper, paper hand towels, napkins, hand soap, hand lotion, hand sanitizers, dispensers, cleaning and wiping products, as well as service and maintenance under the globally leading Tork brand. Essity also offers digital solutions, such as Internet of Things sensor technology, enabling data-driven cleaning. Customers consist of companies and office buildings, universities, healthcare facilities, industries, restaurants, hotels, stadiums and other public venues. Distribution channels for the products consist of distributors and online.

Financial reporting proforma

Essity’s business area reporting proforma for net sales, organic sales growth, adjusted gross margin1), adjusted EBITA1), adjusted EBITA margin1), adjusted ROCE1), operating cash flow and capital employed has been restated for the periods below:

Net sales, SEKm 2019 2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical 22,075 21,170 21,685   5,004 5,255 5,572 5,854
                 
Consumer Goods 76,169 75,146 74,040   17,309 17,577 18,310 20,844
                 
Professional Hygiene 30,731 25,418 26,143   5,216 6,140 7,260 7,527
                 
Other - 18 -1   -1 -4 3 1
                 
Total 128,975 121,752 121,867   27,528 28,968 31,145 34,226

 

Net sales by category, % 2021
   
Health & Medical 18%
Incontinence Products Health Care 11%
Medical Solutions 7%
   
Consumer Goods 60%
Consumer Tissue 40%
Incontinence Products Retail 6%
Feminine Care 7%
Baby Care 7%
   
Professional Hygiene 22%

 

Organic sales growth, %   2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical   -1.8% 5.4%   -4.6% 13.4% 7.3% 6.9%
Incontinence Products Health Care   2.5% 2.1%   -5.4% 2.1% 5.6% 6.8%
Medical Solutions   -8.2% 10.8%   -3.3% 35.4% 9.7% 7.1%
                 
Consumer Goods   3.2% 1.8%   -4.4% 3.7% 2.9% 5.7%
Consumer Tissue   4.1% 0.5%   -3.1% -0.2% -0.6% 5.5%
Incontinence Products Retail   3.0% 5.7%   -7.1% 14.1% 13.0% 5.5%
Feminine Care   5.0% 10.0%   -0.1% 11.0% 15.8% 15.3%
Baby Care   -2.5% -0.6%   -12.2% 12.4% 1.5% -1.3%
                 
Professional Hygiene   -14.6% 5.7%   -27.5% 26.1% 20.7% 16.4%
                 
Group   -1.9% 3.3%   -9.9% 9.5% 7.4% 8.0%

 

Adjusted gross margin1), % 2019 2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical 42.4% 43.4% 42.3%   44.8% 43.2% 42.4% 39.2%
Consumer Goods 27.0% 31.4% 27.0%   31.1% 28.2% 26.4% 23.0%
Professional Hygiene 26.8% 26.9% 23.3%   23.7% 25.7% 24.0% 20.4%
Group 29.5% 32.5% 28.9%   32.2% 30.4% 28.7% 25.2%
                 
Adjusted EBITA1), SEKm 2019 2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical 3,734 3,668 3,821   920 950 1,024 928
Consumer Goods 8,333 11,538 7,938   2,473 1,967 1,832 1,665
Professional Hygiene 4,463 3,317 2,710   419 710 900 681
Other -690 -897 -789   -204 -218 -170 -197
Total 15,840 17,626 13,680   3,608 3,409 3,586 3,077
                 
Adjusted EBITA margin1), % 2019 2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical 16.9% 17.3% 17.6%   18.4% 18.1% 18.4% 15.9%
Consumer Goods 10.9% 15.4% 10.7%   14.3% 11.2% 10.0% 8.0%
Professional Hygiene 14.5% 13.0% 10.4%   8.0% 11.6% 12.4% 9.0%
Group 12.3% 14.5% 11.2%   13.1% 11.8% 11.5% 9.0%
                 
Adjusted ROCE1), % 2019 2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical 12.2% 11.9% 12.7%   12.4% 12.6% 13.8% 12.1%
Consumer Goods 13.6% 19.4% 12.8%   17.0% 13.1% 11.6% 10.0%
Professional Hygiene 18.9% 14.6% 11.8%   7.7% 12.7% 15.3% 11.1%
Group 13.8% 15.7% 12.0%   13.5% 12.4% 12.3% 10.1%
                 
Operating cash flow, SEKm 2019 2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical 3,550 4,141 3,832   732 755 1,307 1,038
Consumer Goods 7,815 9,799 6,328   1,957 927 1,640 1,804
Professional Hygiene 4,938 3,183 2,512   -29 655 1,132 754
Other -664 -1,105 -1,554   -384 -377 -403 -390
Total 15,639 16,018 11,118   2,276 1,960 3,676 3,206
                 
                 
Capital employed, SEKm 2019 2020 2021   2021:1 2021:2 2021:3 2021:4
                 
Health & Medical 30,362 28,642 31,401   30,734 29,618 29,931 31,401
Consumer Goods 61,251 57,146 66,939   58,994 61,040 65,827 66,939
Professional Hygiene 22,996 20,915 24,518   22,607 22,305 24,595 24,518
Other -868 -673 1,082   -5,092 -281 567 1,082
Total 113,741 106,030 123,940   107,243 112,682 120,920 123,940

1) Excluding items affecting comparability

 

Financial reporting for Essity’s new business areas

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Chelsey Quick
Chelsey Quick
- VP Client Success -

We offer built-to-order tissue & hygiene coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.